Number of underemployed workers jumps: reaction

One in ten British workers are now underemployed, official data show. Here's
how analysts reacted to the data.

The number of underemployed – those who want to work more hours – hit a total of 3.05 million in 2012, with school crossing assistants and bar staff some of the jobs with the highest levels of underemployment.Photo: Oli Scarff/Getty Images

11:44AM GMT 28 Nov 2012

Xenios Thrasyvoulou, PeoplePerHour:

The labour market that emerged from the recession is not the same as the pre-crash one.

This data is a stark illustration of a deep and fundamental shift in Britain's workforce. Underemployment surged in the recession, but has continued to rise even as the economy has returned to growth.

More than three million Britons are now underemployed. Business confidence is still weak and many employers are reluctant to commit to taking on full-time staff.

While many of the underemployed are forced into part-time work because of the lack of full-time opportunities, the shift has created a new type of "portfolio" worker, who does several part-time jobs at the same time.

Many have learnt to sell their skills online. Our online marketplace has seen a 102% increase in freelancers signing up in the past year, suggesting this is not just a phase but a profound change in the labour market.

An underemployed workforce is a wasted resource. But the growing market in freelance work offers the best hope of creating a more flexible workforce, and which wastes less of Britain's potential.

Dr John Philpott, The Jobs Economist:

The extent of underemployment identified in these official figures highlights the degree to which the headline unemployment count understates the current shortage of work in the UK economy

While some work is obviously better than none, approaching one in five economically active people are struggling in today's 'no or not enough work' economy.

Add in the effect of falling real take home pay for the vast majority of people in work and it becomes clear how much distress is being suffered in the jobs market.

Andrew Sissons, The Work Foundation:

Underemployment is a serious concern that is getting worse despite improvements in the labour market overall, with one in ten workers now in this position," he said.

The rise in underemployment reflects the flexibility of the UK labour market and highlights once again that there are few gains to be had from further labour market deregulation. It is a symptom of the overall weakness of the UK economy and has flattered the headline unemployment figure.

The only solution to both underemployment and unemployment is a return to solid economic growth. The government should be focusing its attention on the capital markets rather than the labour market in order to support this.

Brendan Barber, TUC:

Around 2.5m across the UK are currently out of work, but this figure only tells half the story," he said.

The fact that the number of under-employed people continues to grow shows just how weak our recovery is, and how fragile the labour market remains.

John Salt, totaljobs.com:

These figures paint the UK economic outlook in a positive light. Following the rush to take staff on for the Olympics, the UK faced a potential autumnal lull in the jobs market. However it seems we’re over the last hurdle for 2012, with temporary workers due to be hired in time for Christmas, the UK labour force will grow into the new year. It seems that the private sector’s inability to pick up the pieces has resulted in the public sector slowly starting to hire, which, alongside the continued increase in temporary and part-time workers, is helping to keep the UK economy afloat. However underemployment remains a concern, as the UK’s reliance on high levels of part-time workers puts pressure on the living and working standards of many UK citizens.

Karen Jennings, Unison:

The Government likes to claim that the employment statistics are proof of our recovery. Under-employment statistics expose this claim as a sham.

No wonder our economic growth has faltered - more than three million people are under-employed, many of them are stuck in part-time work but want full-time hours. Growing under-employment is masking broader economic problems and holding back the recovery.

We desperately need people to be out spending to fuel a real recovery. The Government should intervene - creating jobs by investing in infrastructure and ending the public sector pay freeze to put money in people's pockets.